North Carolina Down Payment Support Programs

Payments Gateway - The North Carolina Housing Finance Agency got two great plans for first-time Home Buyers. These systems will be the Down Payment Assistance System and the Mortgage Credit Certificate.

You purchase a home between December 1, 2009 and January 1, 2009 and if you qualify for one of those plans, it is also possible to qualify for the $8,000 tax credit only enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a house in the prior three years. This is precisely the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

The MCC takes this a step further.

You'll be able to claim 20% of the interest you pay on your own mortgage as a credit on your federal income taxes if you qualify for the MCC. It's possible for you to save as much as $2,000 on your taxes.

Should you qualify for the MCC, for 2009, you will find a way to join this with the $8,000 tax credit. This might reduce the tax liability of a buyer's .

Who qualifies for an MCC is based on the cost of the property along with your income you are buying. Household income is defined as the “gross income of the mortgagor and any other man expected to reside in the dwelling who's 18 years of age or older.”

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

MCC Income Limits 1 Man $61,500 2 Persons $61,500 3 Individuals $70,500 4 Individuals $70,500

MCC Sales Price Limitations New House $220,000 Existing Home $210,000

The purchaser only has to pay and the load would pay as much as .

This program has stricter income limits than the MCC program outlined above. Like the MCC application, it can be utilized along with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, however, can not be utilized together with the MCC. It is an either or situation.

The income and house price limitations Durham and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Individuals $45,650 3 Men $51,350 4 Persons $57,050

Down Payment Assistance Sales Price Limits New House $210,000 Existing Home $210,000